Skinbetter Science was co-founded in 2016 by pharmaceutical industry professionals, Jonah Shacknai, Justin Smith and Seth Rodner, and has since become one of the fastest growing medical-dispensed skincare brands in the United States. Skinbetter Science is known for formulating innovative products with active ingredients for anti-aging, moisturizing, cleansing, exfoliating, skin peeling and sun protection. The brand is strongly supported by deep knowledge of skin and chemistry with clinical trials led by professional members of the American Board of Dermatology.
Skinbetter Science’s products are mainly available through a network of leading dermatology, plastic surgery and medical aesthetics practices throughout the United States, powered by a national medical sales team.
Headquartered in Arizona, the brand’s leadership team will continue to run the business following the acquisition and will be integrated under the leadership of the President of the Active Cosmetics Division within L’Oréal USA.
This acquisition was completed on 14 October 2022 and has been fully consolidated since that date.
The cost of this new acquisition represented €857.7 million. The total amount of goodwill and other intangible assets resulting from its acquisition amounted to €833.1 million.
In 2022, this acquisition represented €105.9 million in full-year net sales and €18.7 million in full-year operating profit.
For 2024, these changes mainly related to Gjosa, YesSkin and Amouage acquisition.
For 2023, these changes mainly related to Aēsop acquisition.
For 2022, these changes related to Skinbetter Science acquisition.
The Group announced on 5 August 2024 that it had acquired a 10% stake in Galderma Group AG for an amount of €1.8 billion, the world leader exclusively dedicated to dermatology and one of the largest global players in the field of injectable aesthetics. In addition, L’Oréal and Galderma have agreed to work towards a strategic scientific partnership that will leverage the undisputed expertise of both companies: Galderma’s across a broad range of dermatological solutions, and L’Oréal’s expertise in skin biology, diagnostic tools and evaluation methods.
This acquisition is treated as Non-current financial assets (note 9.3).
This transaction was financed via the issue of a €1.25 billion bond and the remainder through the Group's available cash.
Net sales are recognised when the goods have been transferred to the customer.
Sales incentives, cash discounts and product returns are deducted from net sales, as are incentives granted to distributors or consumers resulting in a cash outflow, such as commercial cooperation, coupons, discounts and loyalty programmes.
Incentives granted to distributors or consumers are recognised as a deduction from sales: the service cannot be separated from the product sales transaction or it is not possible to reasonably estimate the fair value of the cost of the service.
Sales incentives, cash discounts, provisions for returns and incentives granted to customers are recorded simultaneously to the recognition of the sales if they can be estimated in a reasonably reliable manner, based mainly on statistics compiled from past experience and contractual conditions.
The cost of goods sold consists mainly of the industrial production cost of products sold, the cost of distributing products to customers including freight and delivery costs, either directly or indirectly through depots, inventory impairment costs, and royalties paid to third parties.
Expenditure during the research phase is charged to the income statement for the financial year during which it is incurred.
Expenses incurred during the innovation phase are recognised as Intangible assets only if they meet all the following criteria set out in IAS 38:
In view of the very large number of innovation projects and uncertainties concerning the decision to launch products relating to these projects, L’Oréal considers that some of these capitalisation criteria are not met.
